Orders of the Day — Tobacco Advertising Bill

Part of the debate – in the House of Commons at 11:29 am on 11 February 1994.

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Photo of Mr Tim Rathbone Mr Tim Rathbone , Lewes 11:29, 11 February 1994

No, I could not possibly.

It is interesting that the four European Community countries with the best record on reducing smoking oppose further restrictions on cigarette advertising. It is not by chance that none of the four owns or has a monopoly in tobacco production and distribution, as is found in other countries. The power of advertising, in helping to sell a brand into a market, is clearly an insidious one as far as some countries' domestic trade is concerned. That influences their support of an advertising ban much more than any health circumstances.

The hon. Members for Rother Valley (Mr. Barron) arid for Tooting (Mr. Cox) and my right hon. Friend the Member for Honiton (Sir P. Emery) have said that the case for health must be given priority. It is extremely important to analyse the experience of other countries where an advertising ban has been put into effect and what other influences have come into play. I say that particularly because I believe that our Chancellor of the Exchequer has applied the most serious, strongest and successful determinant in deterring people from smoking cigarettes—putting up their price.

New Zealand was mentioned by the hon. Member for Rother Valley. A partial ban on advertising was introduced there in December 1990. The British Medical Journal made much of the effect of the ban and declining consumption thereafter, but at the same time, and predating that Bill, there was a massive series of increases in excise tax.

These figures will shock my hon. Friends who are worried about indirect taxation or taxation of any kind: excise tax was increased in July 1989 by 28 per cent. and again by 110 per cent., in September 1989 by 112 per cent, in March 1990 by 115 per cent., in September 1990 by 118 per cent., in March 1991 by 121 per cent., and in July 1991 by 146 per cent.

Tobacco consumption had been falling since 1975—long before the increases started—but it was given added impetus by them. It is not peculiar, therefore, that the New Zealand Health Minister commented in November 1991: Changes in New Zealand's attitude to smoking led to a decline in tobacco consumption before the imposition of a ban and this decline has continued. At the same time economic factors such as a fall in incomes have had an effect on consumption. Price increases, economic recession and changes in attitudes are responsible for the decline in overall consumption, rather than a partial advertising ban.

Let us go right the way round the world—to Canada, where there are similar circumstances. An advertising ban came into effect there in 1989. Simultaneously, excise tax was increased by more than 50 per cent. In 1990, the majority of provinces increased excise taxes by between 10 and 50 per cent. In 1991, the Federal Government increased their excise tax by another 58 per cent., and nine out of the 10 provinces increased excise tax by 20 to 40 per cent.

It is no wonder, therefore, that a recent appraisal by the Canadian Superior Court found the possibility (that advertising may affect overall consumption) goes no further than speculation and certainly does not rise to the level of probability. Hon. Members may say that those are instances from other parts of the world, so let us return to an instance in our continent. An analysis of consumption for the period 1973 to 1990, carried out by the Institute for Youth Research for the German Federal Office for Health Education, concluded that there is no link between advertising for cigarettes and their consumption. Indeed, smoking had been decreasing among young people even though—